A district may from time to time incur a bonded indebtedness as provided in this chapter to pay the cost of acquiring, constructing, or completing the whole or any portion of any utility or works referred to in this division, or for acquiring any works, lands, structures, rights, or other property necessary or convenient to carry out the objects, purposes, or powers of the district.
BondsIssuance
Section § 13201
This section allows a district to take on debt through bonds to finance acquiring or building utilities and infrastructure. This can include buying land, structures, or any necessary property to support the district's goals and operations.
bonded indebtedness utility construction infrastructure financing
Section § 13202
When a public board believes that acquiring or building something new in the community is too expensive for its usual budget, they can decide to ask the public to vote. This vote will determine whether or not to take on debt, through bonds, to fund these projects. A two-thirds vote from the board is needed to start this process, and then they hold a special election to let voters have their say on the matter.
Whenever the board by resolution passed by vote of two-thirds of all its members determines that the public interest or necessity demands the acquisition, construction, or completion by the district of any public utility or utilities referred to in this division or any works, lands, structures, rights, or other property necessary or convenient to carry out the objects, purposes, or powers of the district, the cost of which will be too great to be paid out of the ordinary annual income and revenue of the district, it may at any subsequent meeting of the board provide for the submission of the proposition of incurring a bonded indebtedness for the purpose set forth in the resolution to the voters of the district at a special bond election held for that purpose.
public interest bonded indebtedness acquisition
Section § 13203
This law section allows voters in a district to start proceedings to issue bonds without waiting for the board's approval of a formal resolution. Instead, the voters can initiate this action through a petition process.
In lieu of a resolution passed by the board, proceedings for the issuance of bonds for the purposes provided in this chapter may be initiated by petition of the voters of the district.
bond issuance voter petition district bonds
Section § 13204
In this law, if at least 15% of district voters sign a petition to request the district board start or finish a utility project, or buy necessary property, and they also want the district to take on debt to fund it, the district's secretary has to check and confirm the petition's signatures and report the findings to the board right away.
Whenever any petition signed by voters within the district equal in number to at least 15 percent of the total vote cast is presented to the board asking for the acquisition, construction, or completion of the whole or any portion of any utility or works referred to in this division or for acquiring any works, lands, structures, rights, or other property necessary or convenient to carry out the objects, purposes, or powers of the district, and also asking that a bonded indebtedness be incurred to pay for the cost thereof, the secretary of the district shall immediately examine and verify the signatures of the petition and certify the result of the examination to the board.
voter petition bonded indebtedness utility project
Section § 13205
If the needed number of signatures on a petition is confirmed to be real, the secretary must send the board a true copy of the petition, but without the actual signatures.
If the required number of signatures is found to be genuine, the secretary shall transmit to the board an authentic copy of the petition without the signatures.
petition process signature verification board transmission
Section § 13206
When the board gets a petition with enough valid signatures, they must prepare a proposal for the voters to decide on borrowing money through bonds. This is for specific purposes mentioned in the petition. The board can choose to hold this special bond election immediately or wait to combine it with the next regularly scheduled district election.
Upon receiving a petition with the certificate of the secretary stating that it contains the required number of signatures, the board shall formulate for submission to the voters of the district at a special bond election called for that purpose the proposition of incurring a bonded indebtedness for the purposes set forth in the petition. In its discretion the board may defer the calling of the election until the next general election to be held in the district in order to consolidate them.
bond election petition signatures voter proposition
Section § 13207
This law section describes what needs to be included in an ordinance when calling a special bond election. It specifies that the ordinance must set the election date, explain how the election will be conducted, and detail the purpose for which the debt is being considered. Additionally, it must state the estimated cost of the project, the total debt amount, and the maximum interest rate, which cannot exceed 8% annually. If the interest rate is 4.5% or less, it doesn't need to be mentioned in the ordinance.
The ordinance calling a special bond election shall fix the date on which the election will be held, and the manner of holding the election and of voting for or against incurring the indebtedness. It shall also recite the objects and purposes for which the indebtedness is proposed to be incurred, the estimated cost of the utility, works, lands, structures, rights, or other property proposed to be acquired, constructed, or completed, the amount of the principal of the indebtedness to be incurred therefor, and the maximum rate of interest to be paid on the indebtedness, which shall not exceed 8 percent per annum, payable semiannually. If, however, the rate of interest to be paid on the indebtedness does not exceed 41/2 percent per annum, payable semiannually, the rate of interest need not be recited in the ordinance.
special bond election election date debt incurrence
Section § 13208
This law allows voters to consider multiple proposals to take on debt for different projects or goals during the same election.
Propositions for incurring indebtedness for more than one object or purpose may be submitted at the same election.
propositions incurring indebtedness multiple objects
Section § 13209
In California, special bond elections occurring in even-numbered years must be combined with either the direct primary or general election. For odd-numbered years, they are scheduled for the first Tuesday after the first Monday in November and can be either standalone or merged with another lawful election where district voters participate. When these elections are combined with a statewide primary or general election, the board needs to officially plan for this consolidation and delegate the canvassing (counting and confirming the votes) to the relevant county supervisors. They must ensure the results are certified properly. If merging with a different type of election, the rules specific to special bond elections apply, except details like polling places and election officers can align with those of the combined election, using reference to official documents for guidance.
All special bond elections held in even-numbered years shall be consolidated with the direct primary or general election. All special bond elections held in odd-numbered years shall be held on the first Tuesday after the first Monday in November and may be held separately, or may be consolidated with any other election authorized by law at which the voters of the district may vote. When a special bond election is consolidated with a statewide primary or a general election, the board shall in the ordinance calling the special bond election consolidate it with the statewide primary or the general election to be held at the same time in the respective counties in which the district is located and authorize the respective boards of supervisors to canvass the returns and certify the result of the canvass to the board; it shall be the duty of the board or boards of supervisors to so consolidate the election, canvass the returns, and cause the result thereof to be properly certified to the board. If a special bond election is consolidated with any other election, the provisions of this chapter setting forth the procedure for the calling and holding of the special bond election shall be complied with, except that the ordinance calling the election need not set forth the election precincts, polling places, and officers of election, but may provide that the precincts, polling places, and officers of election shall be the same as those set forth in the ordinance, notice, or other proceedings calling the election with which the special bond election is consolidated, and shall refer to the ordinance, notice, or other proceedings by number and title, or by other definite description.
special bond elections even-numbered years odd-numbered years
Section § 13210
This law states that once an ordinance is published, there is no need to provide any additional notice about an election.
The ordinance shall be published, and no other notice of election need be given.
ordinance publication election notice publication requirement
Section § 13211
To approve the issuance of bonds according to this law, at least two-thirds of the people voting on the proposal in an election must agree to it.
The votes of two-thirds of all the voters voting on the proposition at the election are required to authorize the issuance of bonds under this chapter.
bond issuance two-thirds vote election proposition
Section § 13212
If a special bond election fails to get enough votes, the board cannot hold another similar election for at least six months. However, if 15% of the voters in the district sign a petition asking for a new election on the same or a similar bond issue, the board must organize a new election.
If the proposition submitted at a special bond election fails to receive the requisite number of votes, the board shall not within six months after the election hold another special election for the submission of a proposition of incurring a bonded indebtedness substantially the same as the proposition voted upon at the prior election unless a petition signed by voters within the district equal in number to at least 15 percent of the total vote cast is filed with the board, requesting that the proposition, or a proposition substantially the same, be submitted at an election to be called for that purpose.
special bond election requisite votes bonded indebtedness
